Recruiting in China

China's largest ride-hailing application Didi Kuaidi said it has invested in Malaysia-based taxi-booking application GrabTaxi Holdings along with venture capital firms and China's sovereign wealth fund China Investment Corporation.

The total amount of this funding reached U.S.$350 million, and other investors including GGV Capital, Coatue Management, and existing shareholders, according to an email statement today.

CIC is also an investor of Didi Kuaidi.

Didi Kuaidi President Liu Qing said it would share data mining experience and data technology with GrabTaxi, whose main business is in Southeast Asia, and that the latter's experience in Southeast Asia would also help Didi Kuaidi's overseas expansion.

GrabTaxi's vice president of marketing Cheryl Goh said it currently has no plan to be acquired by Didi Kuaidi, as she was quoted by tech news website Techcrunch.com.

Malaysia-based GrabTaxi currently operates in 26 cities in six countries and has successfully diversified its offering to include private cars and motorbikes.

China's largest ride-hailing application Didi Kuaidi said it has invested in Malaysia-based taxi-booking application GrabTaxi Holdings along with venture capital firms and China's sovereign wealth fund China Investment Corporation.

The total amount of this funding reached U.S.$350 million, and other investors including GGV Capital, Coatue Management, and existing shareholders, according to an email statement today.

CIC is also an investor of Didi Kuaidi.

Didi Kuaidi President Liu Qing said it would share data mining experience and data technology with GrabTaxi, whose main business is in Southeast Asia, and that the latter's experience in Southeast Asia would also help Didi Kuaidi's overseas expansion.

GrabTaxi's vice president of marketing Cheryl Goh said it currently has no plan to be acquired by Didi Kuaidi, as she was quoted by tech news website Techcrunch.com.

Malaysia-based GrabTaxi currently operates in 26 cities in six countries and has successfully diversified its offering to include private cars and motorbikes.

Retail investors check share prices at a brokerage in Qingdao, Shandong province, on Aug 18. The benchmark Shanghai Composite Index plunged by 6.15 percent to close at 3,748.16 points.

Share prices plunged on Tuesday as jittery investors resorted to huge sell-offs on concerns that the government has halted its plan to buy equities to stabilize the market.

The benchmark Shanghai Composite Index sank by 6.15 percent, or 245.5 points, to close at 3,748.16. It was the biggest loss in three weeks since an 8.5 percent dip on July 27.

State-owned enterprises, which are expected to undergo major ownership reforms, led the decline with more than 1,600 stocks on both the Shanghai and Shenzhen bourses tumbling by the 10 percent daily limit.

The market slump came after the country's securities regulator said on Friday that the State-owned margin lender China Securities Finance Corp will not step into the market unless there are abnormal market fluctuations.

The regulator's announcement has been widely interpreted as a signal that the government is ending its direct intervention and letting the market mechanism play a bigger role after the benchmark rebounded by about 15 percent from a bottom on July 8.

But Tuesday's decline underscored that investors' sentiment remained fragile as a slowing economy and the depreciation of the yuan continued to weigh on the market.

Jiang Chao, an analyst with Haitong Securities Co, said that the monetary authorities appear to be in a dilemma over the easing policies and the monetary uncertainty may continue to destabilize the market.

"There is need to inject more liquidity as the depreciation of the yuan is likely to trigger capital outflows. But the market rescue efforts have led to a surge in the broad monetary supply which created a policy dilemma," he said in a research note.

The recovery of the country's home prices has also dimmed investors' expectation for further monetary easing, some analysts said.

Li Daxiao, chief economist at Yingda Securities Co, urged investors not to overreact to Tuesday's decline, but warned about the risk of excess valuations of companies in the military industry.

Share prices of listed military-related companies have ballooned substantially ahead of the country's military parade commemorating the end of World War II and on expectations of major reforms.

The average valuation of the industry has been ranked the top among all industries with the price-to-earnings ratio of most companies exceeding 100 times, according to estimates.

"There is a big risk of the bubble bursting in military-related stocks, which is even worse than the startup board," Li said.

PepsiCo announced during a press conference in Beijing on August 14 that it has signed an agreement with leading online direct sales company JD.com Inc (JD) to sell Quaker High Fiber Oats Dairy Drink, its first premium dairy product in China, on JD's e-commerce platform.

It is PepsiCo's first launch of a new product exclusively through e-commerce outside of the US, and it showcases both the significance of PepsiCo's entrance into China's popular dairy beverage market and the strength of JD's e-commerce platform. Through this strategic partnership, both parties will provide Chinese consumers with the latest healthy product choices as well as convenient and fast-paced shopping experiences.

PepsiCo is introducing this product to take advantage of China's fast-growing, value-added dairy market and to satisfy consumers' demand for a healthy and fast-paced lifestyle. It is made from the finest Australian Quaker oats and high quality milk from New Zealand.

The Quaker High Fiber Oats Dairy Drink is produced through its patented "Solu-Oats" unique technology, completely blending the grinded oats with milk. The unique drink keeps not only the nutritional ingredients of natural whole grains, but also boasts a very smooth and silky texture with plentiful dietary fiber.

PepsiCo's launch of its first dairy drink on JD is a combination of mutual strengths of both companies. JD has over 100 million annual active users, a mature e-commerce operating platform and a self-owned logistics system covering all of China. The consumer goods sector, in which foods reside, has always been the strategic priority of JD. Launching its brand new products through JD, PepsiCo can quickly promote and popularize its brands and boost its product sales by leveraging JD's platform and premium services.

PepsiCo has rich experience in the oats-based dairy sector around the world, with proprietary patents and technologies in grain research and development, as well as branded products that are popular among consumers, including Quaker Oats, with over 100 years of history, quality and a fine reputation.

The new Quaker High Fiber Oats Dairy Drink will be sold exclusively on JD for two months. The characteristics of the e-commerce platform, coupled with the marketing of digital media, can directly reach consumers in first-tier, second-tire and third-tier cities and even lower, breaking the geographic divisions challenging traditional sales. By marketing a new product exclusively on an e-commerce platform, PepsiCo hopes to understand consumers' varying needs faster and more deeply.

Online and offline interactions will also help PepsiCo conduct product innovation in a faster and better way so as to provide more products to satisfy consumers' changing tastes.

E-commerce has become an important engine in driving domestic consumption, boosting the upgrade of traditional sectors and developing modern services across China. Survey results indicate that Chinese online consumers are ranked among the most advanced in the world. China has over 500 million social networking sites users who are pioneering the world's e-commerce development.

As a global leader within the food and beverage industry, PepsiCo is seizing the opportunity in choosing China as the first international market in the world to launch and promote a premium new product exclusively through e-commerce. Such a campaign demonstrates PepsiCo's long-term commitment to the Chinese market and its confidence in the development of e-commence in China.

Prior to this launch, PepsiCo had invested incrementally in e-commerce business by actively cooperating with major e-commerce platforms in various areas.

"Adhering to the principle of our 'customer-first' mission, JD is committed to providing products with high cost-performance and superior shopping experiences, hence achieving a win-win with our partners," said Shen Haoyu, CEO of JD Mall, "We are very happy to be the platform to launch and sell PepsiCo's first dairy drink product in China."

Mike Spanos, CEO and President of PepsiCo Greater China, also has a confidence in this partnership.

"With the continued development of the Chinese economy, consumers have ever-more demand for healthy and nutritious dairy drink products," he said. "Entering China's dairy beverage market is a crucial piece of our growth strategy, as it opens new opportunities for PepsiCo in China and will allow more Chinese consumers to enjoy the latest and delicious PepsiCo products."

Global automakers including Volkswagen AG and Toyota Motor Corp are scrambling to assess damage to cars and facilities after two massive explosions in the port city of Tianjin, China's largest auto import hub. [Special coverage]

The blasts that ripped through a warehouse storing volatile chemicals in Tianjin late on Wednesday were so strong that they damaged buildings a few kilometers away.

French carmaker Renault SA said nearly 1,500 of its imported cars stored in a warehouse at the port had been burned while Toyota said the blasts broke windows at its car assembly, logistics, and research buildings, which are jointly run with China FAW Group Corp.

Operations at the Toyota facilities had been closed for a week-long summer holiday and no one was injured.

"In our current view, the damage isn't that severe," a China-based Toyota spokesman said.

Roughly 40 percent of cars imported to China pass through Tianjin's port, or more than 500,000 units in 2014, according to the Xinhua News Agency.

China imported 372.4 billion yuan ($60.8 billion) in cars last year, official data shows.

Subaru maker Fuji Heavy Industries said more than 100 cars that were imported from Japan and were awaiting customs clearance in a warehouse had been damaged by broken windows.

Volkswagen said that some of its imported cars were damaged but did not know exactly how many had been affected. Photographs from the scene showed rows of Beetles and other VW brand cars badly scorched by the explosion.

"We have a task force in the area to find out more and which is primarily concerned with the well-being of our employees," a VW spokeswoman said.

Ford Motor Co, Nissan Motor Co and Toyota also said they were checking their cars parked around the port.

South Korea's Hyundai Motor Corp and Kia Motors Corp had a total of 4,000 cars near the blast site but did not have specific details on the extent of damage, the companies said.

BMW AG said it has two vehicle distribution centers near the port but the damage was unknown given the area had been cordoned off.

Mazda Motor Corp said over 50 cars imported from Japan were also damaged, with peeling paint and scratches.

One nearby showroom was shut on Thursday after its windows shattered, it said.

A Lenovo outlet in Yichang, Hubei province. The company announced a 51-percent year-on-year decline in net income for its first fiscal quarter on Thursday.

Tech firm says Q1 net income fell by 51% on poor smartphone sales

Lenovo Group Ltd said on Thursday it will lay off 3,200 employees after it announced a 51-percent year-on-year decline in net income for its first fiscal quarter which ended in June.

The cuts, which will mainly occur in the company's newly acquired Motorola Mobility unit, represent roughly 10 percent of its global non-manufacturing headcount.

Yang Yuanqing, chairman and chief executive of Lenovo, said poor smartphone sales and worsening global demand for personal computers necessitated the job cuts.

"We are planning to reduce expenses by about $1.35 billion for this fiscal year, including reductions of about $800 million from the Motorola unit," Yang told China Daily in a telephone interview.

"Lenovo is facing extremely intense challenges in the smartphone market and we need quick actions to address the problems." Yang, however, did not disclose any further details about the layoff plan.

Hit by slowing PC and smartphone demand, the company's net profit dropped to $105 million in the first quarter, compared with $214 million a year ago, Lenovo said. In the PC business, which has been Lenovo's cash cow till now, pretax income fell by 8 percent year-on-year despite a growth in market share.

Lenovo shares fell by more than 5 percent in Hong Kong on Thursday to HK$8.01 ($1.03), an 18-month low.

Antonio Wang, a Beijing-based analyst with research firm International Data Corporation, said the global slowdown in smartphone sales has forced Lenovo to find new ways to cut operating costs.

"I think it is reasonable (for Lenovo to cut jobs) as the international market has not been bright and all the players are facing strong headwinds," Wang said. He expects the company to rebound after witnessing another quarterly drop in profits.

"Lenovo wants to be fully exposed to the losses in the current and subsequent quarters and will try to regain its growth trajectory later this year," Wang said.

Lenovo also pledged to release new Moto smartphones every six months to stay competitive in the handset business.

Chen Xudong, Lenovo's senior vice-president in charge of mobile businesses, said sales of Motorola's G and X series missed targets because of slow device updates and decision-making.

"Lenovo smartphones did not perform well in China due to unsuccessful product designs and marketing strategies," Chen said.

According to Chen, the company is attempting to seek new opportunities in other emerging markets such as the Middle East and Africa to lift shipments.

The 16.2 million units of Lenovo and Motorola smartphone shipped in the second quarter registered a mere 2.4 percent annual growth, while Apple Inc, Huawei Technologies and Xiaomi Corp recorded more than 30 percent growth in shipments, according to IDC.

Lenovo purchased Motorola from Google Inc in early 2014 for $2.9 billion.

Chen admitted that Lenovo handsets are "too complicated" for customers to understand. The company will focus on one or two flagship devices to reach more Chinese buyers in the future, he said.

Lenovo now has three sub-brands for smartphones. Besides Lenovo and Motorola branded devices, its affiliate launched a ZUK-branded affordable phone two days ago, targeting the 2,000 yuan ($333) market.

Nicole Peng, research director at Shanghai-based consultancy Canalys China, said Lenovo fell out of the top five in the second quarter because of sluggish sales and lower China market share.

Peng said Lenovo needs to completely overhaul its smartphone lineup.